nuclear-news

The cost of Europe’s new nuclear power plants.

By Paul Messad | Euractiv France, 5 Apr 24

An alliance of 15 pro-nuclear EU member states said the EU needs an additional 50 GW of nuclear power by 2050 to meet energy transition targets, requiring the construction of more than 30 new reactors.

The additional 50 GW of nuclear capacity is estimated to cost between €5 and €11 billion per GW, a range that “shows a great deal of uncertainty and a big difference in the assumptions”, energy economist Professor Jaques Percebois told Euractiv.

Basic assumptions

When costs are expressed in terms of electricity production (measured in kWh, GWh), they take into account the total cost of generating unit of power: investment in construction, operation (day-to-day running, maintenance, etc.) and fuel (loading, life cycle, etc.). This is the Levelised Cost of Energy (LCOE).

However, estimates often focus on the investment costs required to construct the plant (measured in kW, GW)

“Because it represents around 70% of the cost of a new reactor while operating costs represent only around 15% and fuel costs around 15% of the total amount,” explained Percebois.

Different estimates may include or exclude costs associated with decommissioning plants and treating the waste. Cost figures can also be strongly impacted by assumptions about external factors like future inflation rates………………………………..

Any country wishing to subsidise nuclear plant construction needs to navigate EU State aid rules. A number of member states are also calling for the possibility of dipping into European funds to finance nuclear power, or even to set up new dedicated funds.

Support for financing from publicly-backed banks, such as the European Investment Bank (EIB), can also prove decisive………………………………………………………………………………………………..

More clarity needed

This mix of factors explains the wide variations in cost estimates for new nuclear. However, at some point it will be necessary “to have figures” warns Percebois, if only to estimate funding requirements………….  https://www.euractiv.com/section/energy-environment/news/nucleaire-comment-definir-le-cout-des-futurs-reacteurs-en-europe/

April 6, 2024 - Posted by Christina Macpherson | business and costs, EUROPE